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First-Time Home Buyers

First-Time Home Buyers

Is Owning a home the American Dream?

First-Time Home Buyers – Is this your first-time… Are you ready and prepared to take the plunge? Before diving in head first into the process of purchasing a home, you must be prepared. Take the time to educate yourself on both the process as well as what you will need to have in order to be ready and prepared. Being prepared and having all the items you will need organized and ready will help you to take action when your realtor shows you the home of your dreams!

Real Estate 101
5 Steps in the Home Buying Process

Steps in the Buying Process:

  1. What can you afford: Using the break-even rate will help you asses the impact of your homeownership costs, this approach will help you determine how much the purchase price of your new home will need to appreciate (annually) in order to cover the costs of owning a new home
  2. Areas of Interest: Check the market trends for selling prices in your areas of interest.
    1. Having a general idea of what the selling prices are within the cities or interest, will give a general idea of what one will pay and what one will get for the investment
  3. Create a Budget: Figure out your total monthly housing costs… and don’t forget to include taxes and homeowners insurance! Review your budget and ensure you are not spending more then 30% of your income on housing costs!! You risk becoming house poor if you exceed 30% of your income
  4. Be AWARE: There are some areas where your taxes and escrow insurance can literally double your mortgage
    1. Use a Seasoned & Reputable Realtor! Do you have that go-to person? Using a Realtor who    knows what they are doing can make a world of difference in your journey
    2. A good Realtor can help you with all the above listed steps, and consult with you on the best home buying strategies so you don’t end up having buyer’s remorse

5 Items to take with you on the House Hunt:

  1. A pen & pad of paper: Taking notes when you are visiting homes will help you remember various items that you liked, disliked and help you make a more informed decision
  2. Detailed Maps: Maps that are highlighted with areas of interest will help when mapping out house hunt travels
  3. Brochures – Ads – Flyers: Make sure you have copies of these items with you which detail highlights of the homes you will be looking at, as well as the listing price
  4. Digital Camera: Bring a camera to take pictures of features that make the home interesting
    1. In addition to aiding in the process  of remembering the attribute of each home, they also add to the wealth of information one can use when it is time sit down with a Realtor
  5. A Seasoned, Knowledgeable, and Licensed Realtor: Choosing the right Realtor is VERY IMPORTANT
    1. Make sure to choose the right REALTOR because having the right person helps in the home buying process